Texas sales tax and dogs
The regulations for sales tax on dogs sold in Texas are set by the Comptroller of Public Accounts. These regulations state that the sale of pets is taxable unless adopted from a nonprofit animal shelter. Breeders are required to obtain a sales tax permit and collect sales tax on puppies and dogs that they sell. Our sales tax number is 3-20796-9823-2
The current sales tax rate in Texas is 6.25%. We are not required to collect an additional city sales tax since we are not located within a city.
Texas sales tax is due when a buyer picks up or takes delivery of a dog or puppy in Texas. If the dog or puppy is delivered to you outside of Texas you do not have to pay the sales tax but will pay a delivery fee.
The Texas Administrative Code lists the following exemptions for sales tax on dogs (Rule 3.296 for Agriculture, Animal Life, Feed, Seed, Plants, and Fertilizer).
Work animals are exempt from sales tax. They are defined as animals exclusively used in the production of food for human production like sheep dogs.
The code also states that “work animals” used exclusively in aiding handicapped individuals or perform protective services are exempt providing that the animal has been professionally trained for that specific purpose.
It also states that “work animals” shall not include animals raised, trained, or held as pets for sport or show.
Since our dogs and puppies do not meet the exemption criteria, we must collect sales tax on the sale of all puppies and dogs. Sales tax will be collected at 6.25% at the time the puppy or dog is sold.
If you have further questions, please contact Tax Policy Division at 800-531-5441 ext. 36563